Printer and Photocopier Contracts Explained

Office equipment can be expensive. Hence some of the most popular questions we get asked are, “should I purchase or should I lease a photocopier?” and “are all lease photocopier contracts the same?” If you don’t know the answer, read on.

Here we will tell you about the benefits of leasing vs purchasing, and explore the different kinds of contracts on the market, and why we don’t offer them all.

Leasing: The Benefits

Leasing can ensure you are using the latest technologyPhotocopier and print technology is constantly evolving, when you lease, you may have the opportunity to upgrade to the latest photocopier or printer every 3 years.

Fixed monthly payment. With a lease you pay a fixed monthly payment for the term of the contract, which can help you budget more effectively.

You pay nothing up front. With a lease there is no capital outlay.

Many businesses couldn’t afford to buy printing equipment outright. Leasing contracts allow businesses access to what they need but at prices they can afford to pay.

Purchasing: The Benefits

Its easier than leasing. Purchasing a photocopier or printer is easier than leasing, less paper work and no credit applications.

Upgrade without a settlement payment. If your business is expanding, you may outgrow your equipment sooner than your lease is due to end. Purchasing your photocopier or printer allows you to upgrade, and even downgrade, at any time you wish.

No interest. If you purchase you will pay less overall than a lease agreement.

Different types of lease agreements

Leasing your photocopiers and printers is a great option for schools and businesses as there is no capital outlay and predictable monthly or quarterly payments will help your organisation budget effectively. Before you commit to a lease it is important that you understand what you are signing up to as different suppliers will offer different types of arrangements.

The Photocopier and Printer Lease Agreement Geerings Recommends

For our customers who want to lease their equipment, we recommend a lease and a service agreement that run alongside each other. The photocopier or printer lease will be with a third party finance provider who you will pay directly and the service agreement is invoiced by us, which covers your toner, parts and labour. The printer or photocopier service contract will allow us to provide you with equipment maintenance.

For low volume users, we sometimes include minimum invoice values, which ensures we can deliver a first class service.

Other Photocopier and Printer Lease Agreements

There are other types of lease agreements on the market; copy inclusive agreements and total volume rental plans (TVRPs).

A copy inclusive agreement involves one monthly or quarterly payment that covers the cost of the lease and the cost of your service, with a quota of copies included. More often than not, the number of copies included will not last the term of the agreement; at this point the supplier will charge additional copies at an increased cost per copy (CPC) or insist the agreement is resigned with an increased included volume of copies, which will in turn extend the length of the agreement. This type of agreement can result in increased costs and companies find it difficult to break the cycle of refinancing finance.

The other type of agreement available is a total volume rental plan, here, the equipment cost is capitalised into the service revenue. A supplier will normally ask you to commit to a 5 year volume of prints with a monthly quota, but this can actually be used anywhere within the 5 year term. The problem arises when you exceed your monthly quota and the excess copies are charged at a much higher rate, up to 10x the cost per page. Whilst this does shorten the length of the agreement, the supplier is likely to recommend you resign with an increased commitment of copies, which in turn starts the 5 year term again.

These types of agreements can appear like a good deal on paper, especially when compared to a regular lease and service agreement from Geerings, and they rarely benefit the customer.

For a service contracts review or comparative quote, please get in touch with us, for transparent understandable contracts.